HMV Group Sells Waterstones

Photo by ell brown under Creative Commons License

The sale of high street book chain Waterstones by the HMV Group was announced on Friday morning (20th May). The A&NN group, run by Russian entrepreneur Alexander Mamut, has bought the chain of 296 stores in a £53 million deal. Contrary to previous rumours, founder of the chain, Tim Waterstone, has not been mentioned as having any part in the deal.

In a further shake up of the running of the store, current M.D. Dominic Meyers, is stepping down to take a new role within the HMV Group and being replaced by James Daunt, owner of the popular, London based group of shops, Daunt Books. Daunt is known for his views on maintaining the individuality of stores and for a refusal to enter into price discounting wars. Many see Daunts appointment to Waterstones as the start of a change in direction for the chain that will strengthen the brand despite the troubles the industry is currently facing.

Statistics suggest that Waterstones has been feeling the pinch with total sales growth down 4% on the 30^th of April 2011 for the previous year. In the first quarter of the year, like for like sales have been down 8.4%.  

The sale of the chain brings hope for the 4,500 members of staff and for the struggling HMV Group, who have described the sale as ‘an important step in the Group's strategy to reduce its borrowing requirements and facilitate the refinancing of its existing bank facility and ensure that the remaining Group is in a stronger position to meet the current challenges facing the business’. 

 

Mr Mamut has released a statement about his purchase saying,

“We are extremely pleased to have reached an agreement to acquire Waterstones and its great heritage. I believe that our investment and strategy will secure a dynamic future for the UK’s largest bookshop chain and I look forward to working with its booksellers in building on the principle of excellent bookselling which is at the very heart of the business.”